March 20,2009 -
Spring’s arrival coincides with some very good news for National Grid’s natural gas and electricity customers in the form of significant rate reductions which could save New Hampshire consumers hundreds of dollars over the coming months. The company is asking the Public Utilities Commission to approve a 48 percent reduction in the cost of gas compared to last year. The company has also asked to cut electricity rates to 2005 levels.
“Considering the state of our economy, these cuts couldn’t come at a better time for our customers,” said Lisa Crutchfield, National Grid’s executive vice president of Regulatory Affairs and Pricing. “We are delighted to be able to pass these gas and electricity supply savings on to our customers.”
The rate proposals were filed with the PUC this week. If approved, the new rates will take effect on May 1 and continue through October of this year. The lower rates reflect lower market prices for natural gas and oil prices.
Natural Gas
For the period of May through October 2009, the company proposes to lower the price of natural gas to 67 cents per therm compared to $1.30 during the same period last year - a 48 percent reduction. This translates into savings of $29 per month for the typical residential customer. This is the lowest rate National Grid’s New Hampshire customers have paid for natural gas since 2002.
Electricity
Under the proposed electricity rates, the cost of electricity will drop by more than 33 percent from 10.2 cents per kilowatt hour (kWh) to 6.9 cents. For a typical customer using 500 kWh¬¬¬ each month, this translates into a savings of nearly $17 per month. This will be the lowest rates have been for National Grid customers in New Hampshire since 2006.
National Grid does not make a profit on the commodity cost of natural gas or electricity, which it purchases on behalf of its customers. The company uses various methods to limit the impact of market forces, such as locking in long-range pricing and placing gas in storage when prices are more favorable.
Electricity rates reflect the price National Grid pays for the electricity it purchases from the low bidder in a regularly scheduled competitive bidding process. The process follows regulatory guidelines put in place to ensure that National Grid secures the lowest price possible for electricity supply.
Energy Efficiency
Even though energy costs will be significantly lower this summer for its customers, National Grid urges residential and business customers to continue to take advantage of the company’s award-winning energy efficiency programs.
“These programs provide the nest, easiest and most effective way that customers can permanently lower their energy bills,” said Ms. Crutchfield. “And they provide instant environmental benefits in the form of greenhouse gas reductions.”
For residential customers, the programs offer various incentives and assistance to make homes energy efficient through lighting, appliances, high efficiency heating equipment and water heaters, boiler controls, and insulating and sealing measures, while providing increased comfort in the home.
For business customers, the company’s electricity and natural gas energy efficiency programs can help improve efficiency at existing facilities or new facilities by lowering operations and maintenance costs through efficient lighting and controls, heating systems, HVAC, windows and insulation installations, and by participating in other industry-specific efficiency installations and programs. For additional information on all National Grid’s energy efficiency programs customers should visit: www.thinksmartthinkgreen.com.
National Grid is an international energy delivery company. In the U.S., National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA). It is the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island. National Grid also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million LIPA customers.